OPEC Says Oil Output to Remain Unchanged

The Organisation of Petroleum Exporting Countries (OPEC) has agreed to keep oil supplies unchanged, a senior delegate has told Reuters reporters at the 146th (Extraordinary) Meeting of the OPEC Conference.

Ahead of the meeting, ministers said enough crude was being produced to meet winter fuel demand, reducing the need to raise supply.

In his opening address, the Minister of Energy of the United Arab Emirates and president of the conference HE Mohamed Bin Dhaen Al Hamli told delegates that "recent draw-downs in the OECD crude stocks have minimised the excessive overhangs that existed at the beginning of the year, bringing present stocks above the five-year average."

But he also highlighted recent tensions in some oil-producing regions as well as "downstream bottlenecks" which have had a big impact on the market, adding that the "persistent volatility" in prices was "a matter of much concern to OPEC".

Al Hamli also blamed the recent record price rises on "increased speculation which has detached prices from fundamentals".

OPEC producers are under pressure from big consumers like the US to raise output to help contain oil price rises.

By Ozge Ibrahim